Analyst Kelly Bania from BMO Capital reiterated a Buy rating on Albertsons Companies and keeping the price target at $25.00.
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Kelly Bania’s rating is based on several strategic factors that highlight the potential for Albertsons Companies to perform well in the future. Despite a recent pullback in ACI shares due to a decline in gross margin percentage, Bania believes that the company’s investment strategy is prudent. The management’s expectation of a return to EBITDA growth by 2026, after several years of decline, is a positive indicator for the company’s future performance.
Additionally, the improvement in grocery unit trends and the near break-even status of the ecommerce segment are encouraging signs. Bania also notes that ACI’s valuation is relatively low, making it an attractive option for investors seeking defensive stocks. The potential for valuation expansion, combined with the company’s strategic investments and improving trends, supports the Buy rating given by Bania.
In another report released today, Citi also maintained a Buy rating on the stock with a $26.00 price target.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ACI in relation to earlier this year.